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Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).

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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.

Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.

Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.

Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.

Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.

Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.

Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.

Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.

The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.

In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.

In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.

Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.

Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.

The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.

Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.

The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).

In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.

S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.

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Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.

Cardinal Health stock’s relative strength line has also been trending up for months.

The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.

Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.

S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.

Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.

Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.

Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.

Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.

Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.

The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.

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STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.

Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.

GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.

The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.

On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.

Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.

During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.

Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.

IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.

EU directive 1169/2011 comes into full effect on the 13th of December 2016. The first phase of this directive came into effect in 2014 on December 13th but the second requires nutrition data which begs the question of how to calculate nutrition data.The first phase of this regulation required that all ingredients on labels needed to include allergen information within the ingredient list. Prior to this regulation, it was legally acceptable to include allergen information in a separate area of your label.The new regulations simply require allergens to be highlighted within the single ingredient list for the product but ingredients also need to be stated in quantitative order.Quantitative order simply means the largest constituent ingredient must be indicated first, then the second largest and so on. The percentages of these ingredients should also be included.There are several ways highlighting ingredients can be achieved; Users can use bold text underline text colour text or italic textThere are 14 allergens that must be indicated on labelling if they are present within the ingredients of the product. These include wheat or oats or any other cereal containing gluten and also include milk, eggs, fish, crustaceans, molluscs to name a few.Another aspect of the legislation was to harmonise the legibility of text on food labels.Historically, the text could be incredibly difficult to read as manufacturers crammed as much information into as small a section of the label as possible so as to maximise the marketing potential of the rest of the label.The new regulations require that all text must be legible with a specific height of the letter “x” in the font no smaller than 1.2 millimetres. In layman’s terms, that means that the standard Arial or Times New Roman font needs to be 6.5 points and size.The second phase of the regulations coming into force this December requires that nutrition data is supplied with all pre-packaged food so that consumers can make choices regarding the nutrition within the food they buy.The law stipulates that this information must be conveyed to the customer per 100 grams.It is also possible to convey the information additionally per serving so, for example, a sandwich would constitute a serving so a food producer could provide the information based on the entire sandwich. The food producer can also indicate nutrition values in a portion, for example, a biscuit or a small piece of chocolate. But the food producer must also provide the information in a per 100g format in all instances.How to Calculate Nutrition Data
In order to calculate the nutrition values of prepackaged food for sale to the public food production businesses need to know the nutrition values for the constituent ingredients within their product. Perhaps the best way to demonstrate how to calculate nutrition data is to give an example; a ham and mustard sandwich.A ham and mustard sandwich might consist of four ingredients; we will have the bread, ham, mustard, and margarine or butter to make a sandwich. Each of these ingredients will be incorporated along the lines of a recipe; that is to say, there will be a specific weight of each product to make up a standard product.Food manufacturers need to start with the basic data for the nutrition for each of the ingredients – as mentioned, the legislation requires that nutrition data is provided per 100 grams. As all manufacturers are required to do this most food producing companies should be able to obtain that information directly from the packaging of the products that they buy in or by speaking with their supplier.In our example, the food producer could tabulate the data from the constituent ingredients into a table. The information that must be conveyed includes energy in both kilojoules and kilocalories; they must also convey total fat, saturated fat, carbohydrates, sugar, protein, and salt – all in grams.Food producers can also indicate monounsaturated fat, polyunsaturated fats, polyols and starch (which are carbohydrates) and fibre if they wish to do so.The order of the nutrients is specific and must be adhered to comply with the regulations.Once the table of data is prepared per 100 grams for all of the ingredients, the food producer needs to understand the weight of each product used in the recipe to make the sandwich. In this example, the food producer would need to know the weight of two slices of bread (let’s say 60 grams), the ham they use (e.g. 30 grams), 10 grams of mustard 5 grams of margarine.Once this has been done a simple calculation is applied to each of the constituent ingredients to determine how many calories, how much fat, saturated fat etc. is present in the recipe. The calculation will be to divide the per 100g nutrition data by 100 then multiply that by the weight of that constituent in the ingredient.E.g. If 100g of ham is 350 calories, divided by 100 is 3.5 calories per gram. 3.5 calories per gram x 30 grams used in the recipe is 105 calories.Once this is complete, the food manufacturer will have an accurate indication of the total nutrition data for the ham and mustard sandwich by simply adding the values for each constituent ingredient together as a total for the recipe.And that is how to calculate nutrition data using Microsoft Excel or Open Office Calc.Right now, food manufacturers across the UK are facing a huge challenge in achieving the objectives set out in the regulations and they need to address them very quickly if they have not already.